Intelligence officials in Pakistan believe that Osama bin Laden’s al-Qaeda's military leaders have moved into the Islamic Republic of Iran since the arrest of one of their leaders.

The Washington Times, quoting Pakistani intelligence officers, reported on Sunday that the arrest in February of Khalid Shaikh Mohammed, the al-Qaeda military planner, caused a major exodus of the remaining leaders from Pakistan to Iran.

"Al-Qaeda is on the run, and they are transiting to all the neighboring countries," General Musharraf told the daily. "Certainly, they are transiting to Iran as well although we can't say for sure how senior these people are."

Saif al-Adel, an Egyptian who has been appointed as the new military head following Mohammed's arrest, is hiding in the Iranian border city of Zahedan, Pakistani intelligence officials told the paper. (Albawaba.com)